Move talk: Etienne Capoue has been linked with both Arsenal and Chelsea (Picture: AFP)

Arsenal and Chelsea are said to be mulling over a bid for highly-rated Toulouse midfielder Etienne Capoue.

The tough-tackling holding midfielder is widely recognised as one of the best talents in Ligue 1, and has reportedly been watched by scouts from both clubs in the last few months.

Indeed, according to French paper Le Sport 10, the duo have been so impressed with Capoue, that they are ready to splash out up to £8million to land him this month.

Arsenal boss Arsene Wenger is on the lookout for another defensive midfielder after selling Alex Song to Barcelona in the summer, while Blues manager Rafa Benitez wants to add competition for current holder John Obi Mikel.

Toulouse are resigned to losing Capoue in the near future, but are thought to want a fee in excess of £12million for the player, who still has two-and-a-half years left on his current deal.

Tottenham have previously been linked to Capoue, but are thought to have dropped their interest in recent weeks.